Buying the house that is in the preforclosure status is something that will benefit both the distressed homeowner and the real property investor. The biggest benefit of buying a house at preforeclosure stage is that you can prevent the owner from losing his property to his creditors and you will also acquire a very affordable property whose value is way under the market value. You can also gain profit from this preforclosure home that you will buy if you assign the contract to another investor, or if you have it renovated and sole, or use it as a rental property.
Finding preforclosure properties are possible and can be done in many ways. Real estate leads can be found in three sources.
The first thing to do is to check out your county clerk or recorder’s office. Public records list down transactions between homeowners and their lenders. The official notice filed against the homeowner by the lender after they miss even a single payment is called NOD or lis pendens. You can actually get a copy of this list of notices by paying a certain amount which depends on where you live. Your are not likely to get contact info on the homeowner so be prepared to do some research to track them down. You need to be ready to spend some time since there are a lot of documents to check out. There is a need to spend time in doing research since it is possible to find foreclosure leads.
You can also ask for a list of preforeclosure properties form a mortgage broker. You can ask the local mortgage broker to refer you as a free source to distressed homeowners. Distressed homeowners try to get their loans modified or refinanced by the mortgage owner but they are unable to do so. They can opt to sell their property to real estate investors for a fast sale.
These homeowners need honest counseling and guidance because they are not really familiar with foreclosure processes. Purchasing their house will give them a fresh start
You can also find preforclosure homes in an online preforeclosure database. Leads on foreclosure properties are easy to find in this online database. But you need to choose the right online service. Choose an online foreclosure database that lists preforeclosure properties. There are many online sites which are not reliable and does not yield any search results. The reliable online foreclosure data base is complete with a list of preforeclosures all over the country, including the pay off, equity, attorney handling the case, and other information. If you want fast, easy and accurate preforeclosure information, check out the online foreclosure database. It can generate 20 to 30 leads per month which can give you great properties to buy at way under market value.